Embezzlement and Fraud Allegations Spark Legal Battle Between Subcontractors
Unpaid Wages Totaling 60 Million Won Leave Students Facing Expulsion
Jeju’s Reputation at Risk Amid High Dependence on Foreign Workers
Workers are assisting with the harvest at a farm in the Jeju area. The above photo is not related to the article content. Provided by reader
During the winter break, 33 international students who were working on farms in the Jeju region found themselves in danger of being expelled from their universities due to unpaid tuition for the new semester. This was the result of approximately 60 million won in unpaid wages, caused by allegations of embezzlement of profits and falsified financial statements by a subcontracted company. As a result, there are growing concerns that the international image of Jeju-an international tourist city with a significant agricultural sector-could suffer serious damage.
According to coverage by The Asia Business Daily and details obtained from the complaint on the 27th, Company A, which is involved in dispatching international students and providing manpower for farms, filed a police report against its business partner, Jeju-based manpower agency Company B, on charges of fraud, occupational embezzlement, and breach of trust.
The evidence outlined in the complaint indicates that both parties entered into a contract to dispatch international students to farms in Jeju from January 10 to February 28 of this year.
However, according to Company A, Company B, the accused party based in Jeju, concealed actual sales and cost structures, submitted false settlement statements without receipts, and misappropriated profits at its own discretion.
The most serious problem is that the international students, who worked on farms to raise tuition funds, were directly affected by these actions.
According to the complaint, all 33 international students who worked between February 1 and 27 did not receive the promised weekly wages.
The amount of unpaid wages they are owed totals approximately 60 million won. If these wages are not settled, the students may be unable to pay their university fees for the new semester, putting them in an urgent situation where they could face expulsion from their institutions.
The local community is concerned that this incident may harm the overall image of both the agricultural and tourism industries in Jeju.
Given Jeju’s chronic labor shortages and its heavy reliance on foreign workers, such a large-scale wage arrears scandal could spread negative perceptions of Jeju among international populations.
Meanwhile, Company A stated that, aside from the wage arrears issue, it also suffered financial damages of 20 million won due to Company B’s underreported sales and falsified settlements. The complainant added that they plan to submit additional supporting documents-such as copies of reports to the labor office, consent forms from international students, and relevant audio recordings-to the investigating officer in charge of the case.
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